E& sells Vodafone stake to Niel family for $5.95 billion

UAE telecom group E& exited its Vodafone investment in a $5.95 billion sale to French billionaire Xavier Niel, ending a three-year strategic bet on the British carrier that generated a net cash return of about AED 4.7 billion.

"The transaction follows a strategic review by e&, which has terminated its relationship agreement with Vodafone and withdrawn its board representation," the ADX-listed company said in a bourse statement.

The deal covers 3.94 billion Vodafone shares at 112.5 GB pence ($1.51) apiece, including a 2.02 pence final FY26 dividend payable July 30. The shares will initially transfer through off-market block trades to three financial institutions that will hold them until Vega completes regulatory requirements. E& expects the transaction to generate a net cash return of about AED 4.7 billion.

The exit frees E& to refocus on its core telecom and digital services businesses across the Middle East, Africa and Asia, while giving Niel — the founder of French telecom Iliad SA — a 16.21% voting stake in one of Europe's largest mobile operators, potentially reshaping Vodafone's strategic direction.

E&, which is majority-owned by the Abu Dhabi sovereign wealth fund, had accumulated its Vodafone stake over several years as part of a broader international diversification push. The company said the exit reflects its strategic priorities and will allow it to unlock value from the investment while concentrating on its home market and adjacent geographies including Saudi Arabia, where it operates through its 9.8% stake in Saudi Telecom Co.

The sale price of 112.5 pence per share represents a modest premium to Vodafone's recent trading levels. The British carrier's shares have declined about 15% over the past 12 months amid intense competition in European telecom markets and regulatory pressure on pricing in key markets including Germany and Spain. Vodafone's market capitalization stood at roughly 30 billion pounds before the deal was announced.

For Niel, the acquisition deepens his footprint in European telecommunications. The French entrepreneur, who built Iliad into a major challenger brand in France and Italy with a market value of about 12 billion euros, has been expanding through dealmaking in recent years. His Vega vehicle will need to clear regulatory reviews in multiple jurisdictions before the transaction can formally close, though the off-market transfer mechanism allows the financial settlement to proceed in the near term.

Completion of the deal remains subject to customary closing conditions, E& said, without specifying a target date. The transaction is expected to close in the near term.

This article is for informational purposes only and does not constitute investment advice.